India’s Luxury Car Market Accelerates
The luxury car market in India is experiencing a period of unprecedented growth. Sales of high-end vehicles, like the Maybach – with a price tag exceeding Rs 3 crore – have seen remarkable increases, with the German automaker reporting sales of approximately 10 cars per week in 2024. Italian supercar manufacturer Lamborghini has also reported a surge in sales, indicating a strong demand from a new generation of affluent Indian consumers.
)
Much of this growth is being attributed to the increasing number of young, wealthy Indians who are eager to invest in luxury automobiles. The demand has grown so dramatically that some reports suggest buyers may face a wait time until 2028 for Lamborghini models, with order books reportedly full until 2027.
Driving the Numbers: Millennials and Gen Z
The boom in premium car sales is largely driven by the spending habits of millennials and Gen Z, who are embracing luxury and high-performance vehicles.
Record Sales Figures
In 2024, the Maybach saw sales increase by a staggering 145% compared to the previous year. The German carmaker, a subsidiary of Mercedes-Benz, sold over 500 Maybachs in India out of a global total of 21,800 units. This makes India one of Maybach’s fastest-growing markets worldwide.
Daniel Lescow, the global head of Maybach, commented on this growth, stating, “Maybach has a history of over 100 years in India, and it is simply amazing to see how the brand has developed and evolved…making it one of the fastest-growing countries for us globally.”
Lamborghini also experienced a surge in sales. The Italian automaker sold 113 vehicles in India, a 10% increase over its previous best performance in 2023, exceeding their global sales which reached 10,687 units.
Stephan Winkelmann, CEO of Lamborghini, noted the country’s potential, saying, “India, for us, is an asset…there is a huge potential for the future.”
The Young and Affluent
According to car manufacturers, the majority of purchasers of Maybachs and Lamborghinis are young Indians, typically between the ages of 35 to 40. The cars represent aspirational value and status symbols.
Bollywood celebrities have further contributed to the appeal and demand. Actresses such as Shraddha Kapoor and Kriti Sanon, are among the owners of these luxury cars.
Maybach’s Lescow also noted that the average age of an Indian customer is under 40. “There’s a deep interest in the brand and Indian customers are very knowledgeable about the products. I was impressed by the maturity around luxury here,” he reflected.
Lamborghini’s Winkelmann also highlighted that the average age of Lamborghini buyers in India is below 40, making it the youngest market after China.
He added, “You have a lot of start-ups in India which are very successful. You have very young, high net worth individuals who are stepping into this type of car. So this is positive for us.”
The Broader Luxury Market
The trend in luxury car sales reflects a wider shift in consumer behavior in India. Younger generations are spending more freely on luxury items, including cars, watches, and accessories.
In fiscal year 2024, Louis Vuitton India Retail saw a 13% rise in revenue from operations, totaling Rs 811.6 crore. Hermes India Retail and Distributors, the maker of the Birkin bag, reported sales of Rs 316 crore in luxury bags and accessories, a 27% increase.
According to Euromonitor International, the Indian luxury market reached $8.5 billion (Rs 70,000 crore) in 2022, a $2.5 billion (Rs 20,500 crore) increase from the prior year. A June 2024 report by BDA Partners projects that India’s luxury sector will more than triple by 2030, driven by rising disposable incomes and a growing number of high-net-worth individuals.
